Electric Scooter Subsidy in India: All You Need To Know
Electric scooters are one of the most sought-after electric vehicles in India, thanks to their affordability and manoeuvrability in crowded cities. To boost adoption further, the Indian government is providing generous subsidies on electric scooters under the FAME-II scheme.
In this blog, we discuss everything you need to know about electric scooter subsidies in India.
Features and benefits of the FAME scheme
The FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme aims to incentivise electric vehicle production and adoption in India. It offers several benefits:
- Purchase Incentives: The scheme provides subsidies while purchasing qualifying electric vehicles like EV two wheeler, reducing their upfront cost. This encourages faster adoption.
- Technology Development: FAME promotes research, technology development, pilot projects, and charging infrastructure development for EVs. This builds a conducive ecosystem.
- Manufacturing Support: FAME supports electric vehicle and component manufacturing in India through subsidies – encouraging domestic production.
- Environment-Friendly: EVs produce no direct emissions, so FAME will reduce pollution levels in cities by accelerating EV adoption.
Eligibility Criteria for Electric Scooter Subsidy
Not all electric scooters qualify for FAME-II’s demand incentives. Only scooters meeting the eligibility criteria can avail of subsidies:
- Range: Electric scooters should have a minimum range of 80 km/ charge to qualify for the incentive.
- Speed: Electric scooters applying for the subsidy should have a top speed of at least 40 km/hour.
- Battery: The electric scooter battery should meet performance and warranty criteria set under FAME-II guidelines.
- Components: At least 50% of the electric scooter components by value should be manufactured in India.
- Testing: Electric scooters must conform to relevant specifications and testing procedures mentioned in the FAME-II notification.
- Certification: The manufacturer must have the necessary certifications from testing agencies approved under the scheme.
Documents Required to Apply for Subsidy in India
Electric scooter buyers must submit a few documents to the dealer/manufacturer to avail subsidy during purchase:
- Aadhaar Card: An Aadhaar card is mandatory to apply for the incentive as it helps establish your identity and prevent duplication.
- PAN Card: Submit a copy of your Permanent Account Number (PAN) card as income tax identification and for processing payments.
- Electricity Bill: Provide a copy of a recent electricity bill as proof of residence to validate your Aadhaar and PAN details with your address.
- Vehicle Invoice: Produce the tax invoice of your electric scooter purchase, specifying scooter details like make, model, serial number, date etc.
- Bank Passbook: Submit a copy of the first page of your bank passbook for crediting the subsidy directly into your linked account.
Thus, by providing copies of your Aadhaar card, PAN card, electricity bill, vehicle invoice and bank passbook – an electric scooter buyer can avail of subsidy under the FAME II scheme.
What Is the Subsidy for Electric Scooters in India?
Subsidy for electric two-wheelers increased:
- The limit on subsidies was raised from 20% to 40% of the vehicle price
- The incentive increased from Rs. 10,000 per kWh to Rs. 15,000 per kWh
Conclusion
The electric vehicle revolution has spread across the globe but the upfront cost of purchasing EVs has hindered faster mainstream adoption so far. Generous electric scooter subsidies under the FAME II scheme are reducing prices, thereby driving a large-scale transition to electric scooters.
